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As developed economies have substituted away from manufacturing towards services, so too have developing countries--to an even greater extent. Such sectoral change may be premature for economies that never fully industrialised in the first place. This article presents evidence that countries with smaller manufacturing sectors substitute away from manufacturing to a larger extent, suggesting a trade channel through which falling international relative prices of manufacturing lead price-taking developing economies to substitute accordingly. [ABSTRACT FROM AUTHOR]

The new commercial globalization changed the map of the global industry. Today's world is different from yesterday. North does not dominate South in the same way. In the South there are large heterogeneities between developing countries, the emerging Asian and Latin American countries, etc. Some countries in the South have come to impose their own rules. However, not all emerging economies in the South have the same capacity prevail, as Latin America. Some Asian countries benefit temporarily from high growth, but experience a process of deindustrialization that weakens them. Some theories and analytical tools have become outdated or inaccurate, such as the center-periphery approach. Countries that yesterday belonged to the periphery have acquired characteristics of the old center and even exercise control over developed countries. [ABSTRACT FROM AUTHOR]

Domestic and international economic policy is still dominated by laissezfaire economics, despite the failure of such policy analysis in the 1980s to have brought about the sort of economic growth and high employment witnessed through the 1950s and 1960s. The dominant feature of international trade theory is the assumed superiority of free trade and non-intervention. In this paper we argue that the neo-classical case for free trade is based on inappropriate assumptions; relax these assumptions and the case for non-intervention goes with them. This paper argues that to return to a situation of reasonable stability and balanced growth for individual countries, and for the world economy as a whole, increased management of the international trading and monetary systems will be required. [ABSTRACT FROM AUTHOR]